Braden Karony, former CEO of SafeMoon, was found guilty of defrauding investors and using stolen funds to buy luxury homes and vehicles.
A New York federal jury has found Braden John Karony, former CEO of SafeMoon, guilty on all counts in a criminal case tied to a major crypto fraud scheme. The charges included conspiracy to commit securities fraud, wire fraud, and money laundering.
Karony and his co-conspirators misled investors about how SafeMoon operated and used investor funds for personal gain, the Department of Justice wrote in a Wednesday press release. Prosecutors said Karony “used his scheme to purchase multiple homes, sports cars, custom trucks, and other luxury goods.”
“As proven at trial, the SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors who were deliberately misled by Karony. Karony used his scheme to purchase multiple homes, sports cars, custom trucks, and other luxury goods.”
U.S. Attorney Joseph Nocella
SafeMoon’s token (SFM) fell 7% to $0.00001925 following the news, extending a decline that has left it down 99.7% from its all-time high three years ago.
Karony, along with co-defendants Thomas Smith and Kyle Nagy, allegedly accessed and drained SafeMoon’s liquidity pools despite publicly claiming they were “locked.” Smith pleaded guilty and testified against Karony. Nagy remains at large, reportedly having fled to Russia.
Prosecutors said Karony personally gained over $9 million, which he spent on a $2.2 million home in Utah, additional properties, and luxury vehicles including two Audi R8s, a Tesla, and custom trucks. Now, Karony faces a maximum sentence of 45 years. A date for sentencing yet to be announced.
